Join        Login             Stock Quote

Aon (AON) 4Q Earnings Rise 10 Pct, Beat Estimates

 February 01, 2013 07:37 AM

(By Balaseshan) Global insurance broker Aon Plc (NYSE: AON) reported a 10% increase in quarterly earnings driven by a higher rate of organic revenue growth across each segment, and strong free cash flow growth. Results exceeded Street's expectations.

Profit from continuing operations for the fourth quarter were $305 million or $0.95 per share, up from $277 million or $0.84 per share last year. Earnings per share (EPS) from continuing operations rose to $1.27 from $1.16.

Total revenue increased 4% to $3.12 billion, driven by a 4% rise in organic revenue, partially offset by a 50% drop in investment income due to lower average interest rates.

[Related -Analysts' Upgrades And Downgrades: INTC, SNDK, TXN, MO, ATML, AON, CL, ADM]

Analysts, on average, polled by Thomson Reuters had expected a profit of $1.26 per share on revenue of $3.07 billion for the fourth quarter.

Risk solutions revenue rose 2% to $2.1 billion, due to 3% organic growth in commissions and fees partially offset by a 50% drop in investment income. Retail Brokerage organic revenue increased 3% reflecting revenue growth in both the Americas and International businesses.

HR solutions revenue increased 7% to $1.1 billion, due to 6% organic growth in commissions and fees and a 1% favorable impact from acquisitions, net of divestitures.

Organic revenue in Consulting Services grew 8% driven primarily by solid growth across all businesses. Organic revenue in Outsourcing rose 6% due primarily to strong growth in healthcare exchanges and net new client wins and demand for discretionary services in HR BPO.

[Related -Aon (AON) Downgraded To 'Hold' By Deutsche Bank; PT Lowered To $52]

"As we look ahead to 2013, we have positioned our industry-leading platform for solid long-term growth, improved operational performance, strong free cash flow growth and effective capital management," said Greg Case, president and chief executive officer.

AON closed Thursday's regular session up 0.03% at $57.74. The stock has been trading between $45.04 and $58.43 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageDeath Cross More Of A Buy Signal?

With the recent weakness in the equity markets, many stocks' and stock indices' chart patterns have traced read on...

article imageKey Price Planning Levels Updated for Chipotle

After a huge price surge from $600 to $760, Chipotle (CMG) shares retraced to a critical “Make or Break” read on...

article imageChina Growth and Market Structural Integrity Top List of Fear Poll Concerns

After a hiatus of almost a year (the October 2014 pullback, to be exact), I have reprised the VIX and More read on...

article imageIs The Treasury Market Still Expecting Moderate US Growth?

The roller-coaster ride in global markets in recent weeks has raised new doubts about economic growth in read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.